Ethics and Gift Giving

THE ETHICAL VALIDITY OF ENTERTAINMENT EXPENSE & GIFT GIVING

Section I: Ethical Problem

Imagine this scenario. You are minutes away from going on a date with the girl of your dreams; the girl that you know is going to make you into the man you want to be. You bolster your wallet with some cash; you shower, shave, and wear your best clothes. You take her to the most expensive restaurant you can afford, demonstrate your value to her as a potential suitor, and impress her by telling her what you can offer her. Your primary objective is to win this girl over, so in the process you throw some money around to show her you mean business.

Now imagine the above scenario…but in the context of a professional and client relationship. There are a stark number of similarities, aren’t there? You are trying to impress a potential client that can bring in big business for your company so indubitably, you are going to put on your best face and try to do everything you can to impress them. Impressing a client is no different from impressing a date. In both situations you have something to offer, and you want something from the other party, respectively, companionship or business.

When a company wants to start a new relationship with a client, they can’t just bluntly request to do business. They have to spend some money on the client and slowly show them that they really can offer them something beyond just a signature on a document. Companies recognize this, and they account for it in their Business and Entertainment Expense accounts. Most often, a company takes the client out to an initial dinner where they go over, very briefly, what their company can offer the potential client. After the initial dinner, the company will follow up by inviting them to play golf, see a sports game, something casual. Usually after that they will send a gift to the client. Finally, they will ask the client whether or not he would be willing to do business. It seems as if this process has...